Ethereum
Ethereum Falls Below $3,000 Again, ETH ETF Spot Sparks Debate in Crypto Community
- Evan Van Ness says Ethereum spot ETFs could be approved despite ongoing investigation into security status.
- User X shares a unique opinion that the SEC cannot approve or deny spot ETH ETFs.
- Ethereum investors are still showing uncertainty as they wait for new market outlook after the ETH ETF decision.
Ethereum fell below the key $3,000 level again on Thursday after showing signs of a rally. The recent price action follows several predictions from the crypto community regarding the Securities & Exchange Commission’s (SEC) decision regarding spot ETH ETFs next week.
Learn more: Ethereum Shows Mild Bullish Signs, SEC Faces Multiple Obstacles in Attempts to Deny Ethereum Spot ETFs
Daily Market Player Roundup: Crypto Community Shares Ethereum Spot ETF Predictions
Members of the Ethereum community are sharing their predictions with just a week until the deadline for the SEC to decide on spot ETH ETFs. Their comments reveal key details about why the agency might or might not approve ETFs.
Former head of decentralization at the Ethereum Foundation, Evan Van Ness, said the market is underestimating the possibility of SEC boss Gary Gensler approving the ETH spot ETF “while trying to claim that the ‘ETH is a security’. This comment follows several predictions that the SEC’s recent crackdown on Ethereum-related companies aims to classify the largest altcoin as a security and, therefore, deny ETH ETF spot applications.
Read also : Top 3 price predictions Bitcoin, Ethereum, Ripple: Altcoins saved as BTC acts on CPI data
However, Larry Fink, CEO of asset manager BlackRock, said earlier in an interview on CNBC that the SEC could still approve spot ETH ETFs even if it classifies Ethereum as a security. This aligns with recent revelations that the SEC has considered ETH as a potential security since April 2023 and yet approved ETH futures ETFs in September.
Eric Conner, co-author of Ethereum Enhancement Proposal EIP-1559, expressed confidence that the SEC will approve ETH spot ETFs on May 23.
Another X user, @fewture, gave a unique perspective suggesting that the agency cannot approve or deny one-off requests for ETH ETFs.
My new theory is that the SEC neither approves nor denies it. They don’t offer anything in writing. This means that it is de facto approved, but then I anticipate that the SEC will challenge this process judicially, not to mention the analysis of ETH itself.
They will seek an injunction so that the registration cannot take place.
– fewture (@fewture) May 15, 2024
Bankless podcast host Ryan Sean Adams also shared his views in an article:
I don’t see any signs that the SEC will approve the Ethereum ETF next week, except one.
IF (and it’s a BIG IF)… IF Biden and D wake up at the eleventh hour and realize that anti-crypto Gensler is about to lose them the White House, they might pressure him to which he approves.
It’s far but anything can…
– RYAN SΞAN ADAMS – rsa.eth (@RyanSAdams) May 15, 2024
Many expect the SEC to easily deny one-off requests for ETH from Van Eck, ARK 21Shares and Hashdex this month, but expect the regulator to face challenges when it comes to dealing with those from Grayscale, Fidelity, BlackRock and Invesco.
ETH technical analysis: Ethereum traders still uncertain
Ethereum is falling again after briefly surpassing the $3,000 mark on Wednesday. The largest altcoin has seen slow growth compared to Bitcoin and Solana, which have risen rapidly during this cycle.
For example, the ETH/BTC ratio has been steadily declining since the start of the year. However, many are predicting that it is bottoming out and could rebound soon. Any slight rally could result in a return of capital towards Ethereumwhich, in turn, will increase its price.
Learn more: Ethereum tries to take the lead following the increased chances of a one-time rejection of the ETH ETF
However, the ETH/USDT pair still reveals market uncertainty, especially as open interest hovers around 0.5%. ETH liquidations total $23.79 million, with $18.29 million coming from liquidated long positions.
ETH/USDT 4-hour chart
ETH failed to overcome the $3,103 resistance from April 26 and is expected to hold the key support level of $2,852 in hopes of a potential rebound. However, continued uncertainty will not allow for sustained upward movement over the coming days.
As stated in a previous analysisinvestors are waiting for new insights after the SEC’s initial ruling on VanEck’s ETH spot ETF on May 23 before opening their positions.